Auto stocks generally rose today. As of press time, $BYD COMPANY (01211.HK)$ 、 $SERES (09927.HK)$ surged nearly 5%, $LEAPMOTOR (09863.HK)$ 、 $LI AUTO-W (02015.HK)$ rose more than 4%, $NIO-SW (09866.HK)$ 、 $XPENG-W (09868.HK)$ rose more than 3%.
In terms of developments, on February 20 local time, the U.S. Supreme Court ruled that the Trump administration’s large-scale tariff policy was illegal. Trump first announced a 10% tariff on global goods in addition to regular tariffs, then stated that the original 10% global import tariff rate would increase to 15%. Additionally, Cui Dongshu, Secretary General of the China Passenger Car Association, stated that China’s automotive overseas production and sales system has completed a key transformation toward ‘industrial globalization.’
Founder Securities published a research report stating that in January, the auto market faced short-term pressure due to seasonal off-peak demand and the pull-forward effect of prior policy incentives. However, with the gradual implementation of vehicle replacement subsidy policies across regions, end-user demand is expected to recover at an accelerated pace. Exports maintained strong performance, helping to smooth out industry fluctuations. It is projected that China’s auto exports will reach 6.34 million units in 2026, representing a year-on-year increase of approximately 13%, with their share of total production likely exceeding 20%.
Editor/Rocky
